Tesla offers a salary package from a dollars billion to Elon Musk (if he can remain concentrated)
The board of directors of Tesla asks shareholders to sign a massive and unprecedented wage set which could transform its CEO, Elon Musk, who is already the richest man in the world, in the first trillionaire.
If the plan is approved, Musk should reach several performance benchmarks over the next 10 years to obtain full payment.
The Council declared in a securities file on Friday that the main objective of the remuneration package was to keep “Mr. Musk to direct Tesla through its next phase of transformational growth ”. In other words, the board of directors wants Musk’s attention to Tesla. But Musk, who has run the company since 2008, also juggles four other companies: SpaceX, XAI, Neuralink and The Boring Company.
Musk’s ruinous incursions in politics also harmed Tesla’s brand. In 2024, he approved Donald Trump for the president, paid millions into the Trump campaign and led a reshuffle of the federal government through the new government’s efficiency ministry (DOGE). Musk’s policy has sparked a backlash that included criminal fire and vandalism incidents in Tesla stores and charging stations. Meanwhile, Tesla has recorded two of its worst quarters for years, with world vehicle deliveries down 13%. In Europe, sales are particularly disastrous.
The new remuneration proposal follows the decision of a Delaware judge to block the remuneration plan of $ 55 billion in musk from 2018, the headquarters who declared that the agreement had been unjustly approved. Tesla appealed the decision. And in August, the company offered Musk about $ 29 billion in shares if he agreed to stay two more years.
How the new plan would work
As part of the new plan, Musk could be awarded up to 423 million shares, worth around $ 143 billion to today’s prices and equal to around 12% of Tesla shares. Musk already has around 13% of the company. To take advantage, he must remain as CEO or hold another executive office and take a series of market production and capitalization milestones.
The price is divided into 12 slices. The first unlocked if Tesla’s market capitalization, currently oscillating about 1 dollars billion, doubles 2 billions of dollars. The following nine slices require $ 500 billion more, and the last two require a billions of dollars each.
For Musk to win full payment, Tesla should reach a market value of $ 8.5 billion over the next decade, about eight times higher than its current evaluation. This would transport Musk actions worth more than 1 dollars.
The plan also links its payment to certain ambitious operational objectives, in particular by delivering 20 million vehicles, by putting a million Robotaxis on the road and deploying a million Optimus humanoid robots.
